ETHIOPIA

COUNTRY OVERVIEW

LOCATION AND SIZE.

Located in the Horn of Africa— the pointy peninsula-like landmass
that emanates out of the eastern part of the continent—Ethiopia
has a total area of 1,127,127 square kilometers (935,183 square miles),
rendering it slightly less than twice the size of Texas. A landlocked
country completely surrounded by other states, Ethiopia has a total
border length of 5,311 kilometers (3,300 miles). Ethiopia is bordered by
Kenya to the south, Somalia to the east, Djibouti and Eritrea to the
northeast, and Sudan to the west. The capital of Ethiopia, Addis Ababa,
is located in the heart of the country.

POPULATION.

In 1975, the population of Ethiopia was approximately 32.2 million. With
a relatively high growth rate of 2.7 percent between 1975 to 2000, the
population of Ethiopia doubled during this period, reaching a total of
64,117,452 by July 2000. Currently, the population growth rate remains
high (2.76 percent), and it is forecasted that the population will reach
90.9 million by 2015 (July 2000 est.). In order to restrain the growth
process, the Ethiopian government recently included a population control
component in its overall development program. The death rate was
estimated at 17.63 deaths per 1,000 people, and the birth rate was 45.13
births per 1,000 people (2000 est.). In terms of the age structure of
the population, 47 percent of Ethiopians are younger than 15 years of
age, 50 percent are between the ages of 15 to 64, and only 3 percent are
older than 65 years of age. Only 16.3 percent of the population live in
urban areas.

Ethnically, the population of Ethiopia is extremely heterogeneous
(diverse). The country's principal ethnic groups are the Oromo
(40 percent), the Amhara and Tigre (32 percent), Sidamo (9 percent),
Shankella (6 percent), Somali (6 percent), Afar (4 percent), and Gurage
(2 percent). The remaining 1 percent belong to various other ethnic
groups. In total, there are more than 80 different ethnic groups within
Ethiopia. Islam is the predominant religion with 45 to 50 percent of the
population identifying as Muslim, 35 to 40 percent as Ethiopian Orthodox
(a distinct denomination of Christianity), and 12 percent as animist (a
term used to delineate a wide range of native African religious belief
systems). The remaining 3 to 8 percent are adherents of various other
religions.

Many languages are spoken by the inhabitants of Ethiopia, including
Amharic, Tigrinya, Orominga, Guaraginga, Somali, and Arabic. Numerous
other local languages and dialects also are spoken. Many of the
languages are from the Semetic or Cushtic linguistic groups. Amharic is
the country's only official language, while English is the major
foreign language taught to Ethiopians in the educational system.

Like many African countries, one of the most daunting prospects that
Ethiopia faces is a massive HIV/AIDS epidemic. By the end of 1997,
conservative estimates stated that 2.6 million Ethiopians were living
with HIV/AIDS, while the adult prevalence rate was 7.4 percent. In
addition to causing considerable suffering,

HIV/AIDS places a large burden on health care expenditure and
diminishes the ability of the poor to save and invest, due to the high
cost of treating the disease. According to the
United Nations Development Program
(UNDP), the efficacy of the government's plan to curb the
epidemic will depend on its ability to address the structural factors
that facilitate the spread of the disease, such as poverty and gender
inequality.

MINING.

Regarding the exploitation of natural resources, gold, marble,
limestone, and small amounts of tantalum are the major minerals mined in
Ethiopia. Of these minerals, gold, which provided US$12.5 million to the
economy in 1996, is the most significant contributor to export earnings.
Gold mining output has oscillated (wavered) considerably throughout the
1990s, fluctuating, for example, from 3,500 metric tons in 1992 to 1,800
metric tons in 1994 and 5,100 metric tons in 1996. Traditionally, the
mining industry, which remains under state domination, has played a
marginal role in Ethiopia's economy. Resources with potential for
future commercial development include potash (recently found in large
deposits), natural gas, iron ore, and possibly coal and geothermal
energy.

MANUFACTURING.

Manufacturing as a percentage of the GDP only marginally increased
throughout the 1990s.

In 1992, for example, manufacturing constituted 3.9 percent of the GDP,
whereas its percentage share had slightly increased to 4.3 percent by
1998.

The manufacturing sector of the Ethiopian economy produces construction
materials, metal, and chemical goods, in addition to basic
consumer goods
such as food, beverages, clothing, and textiles. Despite massive
privatization campaigns, the industrial sector remained dominated by the
state, with 150 public (state) enterprises accounting for more than 90
percent of the entire sector's value in 1999. Production by
state-owned enterprises is centered on food and beverages, textiles,
clothing, leather products, tobacco, rubber, plastic and cement. In
1999, there were also 165
private sector
manufacturing firms involved in producing goods such as bakery
products, textiles, footwear, and furniture.

Though certain areas of manufacturing are now open to participation by
foreigners with permanent residence status as a result of legislation
passed in 1998, still other areas, such as garment factories, are
restricted from foreign participation. In 1998, there were a total of
163 foreign investment projects with total projected capital investment
of US$1.2 billion. Of these projects, 90 were wholly foreign owned while
73 were
joint ventures
with local partners. Major foreign investors include the United States,
with investments worth US$9 million in 1999, as well as Saudi Arabia,
South Korea, Kuwait, and Italy. U.S.-based manufacturing companies that
have a significant presence in Ethiopia include Pepsi-Cola, Coca-Cola,
Caterpillar, General Motors, Xerox, and John Deere. Numerous other U.S.
firms also operate in Ethiopia, albeit in different sectors of the
economy.

SERVICES

Accounting for 42 percent of the GDP, services are an extremely
important component of Ethiopia's economy (1998 est.). At the
same time, however, with only 12 percent of the labor force engaged in
services and government employment, a relatively small percentage of
Ethiopians work in the service sector. The large contribution of
services to the GDP stems mostly from the government and the strong
financial sector.

TOURISM.

According to the aforementioned
Country Commercial Guide 2000,
the tourism industry in Ethiopia is negligible, though there is great
potential for commercial development. With many unique indigenous plant,
bird, and mammal species, the country has an enormous diversity of
wildlife, exotic landscapes, and architectural ruins of prehistoric,
historical, and religious significance. As such, Ethiopia is an ideal
location for foreign and local visitors embarking upon historic,
cultural, or
ecotourism
expeditions.

FINANCIAL SERVICES.

Following the 1974 revolution, the banking and financial sector in
general came under the domination of the state. In 1994, legislation was
passed that permitted the establishment of private banks and insurance
companies but prohibited foreign ownership of such companies.

Ethiopia's central bank, the National Bank of Ethiopia (NBE),
seeks to foster monetary stability and a sound financial system by
maintaining credit and exchange conditions perceived to be conducive to
the balanced growth of the economy. All transactions in foreign exchange
must be carried out through authorized dealers under the control of the
NBE. The Commercial Bank of Ethiopia (CBE), whose assets totaled over
US$3 billion in 1996, is a government-owned bank with 167 branches in
operation and over US$1.5 billion on deposit (1996 est.). The CBE, the
largest bank in Ethiopia, offers credit to investors on market terms,
though the 100 percent collateral requirement limits the ability of
small entrepreneurs with limited resources to capitalize upon business
opportunities.

Ethiopia's first private bank, Awash, commenced operations in
1994 and now boasts 6 branches in Addis Ababa and 2 in the Oromiya
Regional State. In addition to Awash, 5 other private banks now operate
in Ethiopia, including Dashen Bank (with a total of 12 branches), the
Bank of Abyssinia (2 branches), and Wegagen Bank (5 branches). The 2
newest private banks in operation are NIB International and United Bank.
Since the banking and financial reforms of 1994, there are also 7
private insurance companies in operation—United, Africa, Nile,
Nyala, Awash, National, and Global. Ethiopia does not have a securities
market, although the U.S. Department of State reported that a private
sector initiative to establish a mechanism for buying and selling
company shares was expected to begin by the year 2000.

RETAIL.

Ethiopia's retail sector consists mostly of small shops, local
markets, and roadside stands, many of which are part of the
informal sector
of the economy, which remains unregulated and untaxed. Investment
legislation passed in September 1998 also allows foreigners with
permanent resident status to participate in retail and wholesale trade.

DEPENDENCIES

Ethiopia has no territories or colonies.

BIBLIOGRAPHY

Araia, Ghelawdewos.
Ethiopia: The Political Economy of Transition.
Lanham, Maryland: University Press of America, 1995.

Yes, almost you have done it. On the location side try to incorporate South Sudan. The Comment i do have is about Ethiopia's future fate. Indicate proudly that we are on the right track, thanks to our late leader, we have the right policy and development policy.Ethiopia is one of the ten progressively leading developmental nations in the world. So you need to incorporate this issue.Try to mention Ethiopia with a federal democratic government will continue to be the largest country in the world in all aspects-Democracy, development, social, cultural environmental development.